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The Five Essential Truths of the Application Economy

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We’re in the midst of a business revolution – one where customers interact with businesses via software. Where apps have become the primary face of the business. Where JPMorgan Chase has more software developers than Google and more technologists than Microsoft. Welcome to the Application Economy.

This SlideShare outlines five things IT professionals should know about the Application Economy and how it will affect their business, their industry, and their careers. In some industries, the number of software jobs has doubled over the past ten years.

Learn more at http://rewrite.ca.com/us/default.aspx?mfm=425887

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The Five Essential Truths of the Application Economy

  1. 1. The Five Essential Truths of the Application Economy
  2. 2. Welcome to the Application Economy We’re in the midst of a business revolution – one where customers interact with businesses via software. Where apps have become the primary face of the business. Where JPMorgan Chase has more software developers than Google and more technologists than Microsoft. Source: Anish Bhimani: A Leader in Risk Management at http://engineering.cmu.edu/alumni/profiles/2013/bhimani_jpmorgan_chase .html
  3. 3. Applications dominate the mobile Web 20% 14% 80% 86% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2013 2014 Source: Flurry Analytics, Apps Solidify Leadership Six Years into the Mobile Revolution, April 2014 3 © 2014 CA. ALL RIGHTS RESERVED. Mobile Web Apps Percentage of time spent
  4. 4. But mobile is just part of the application economy 34% 8% 58% 40% 4 © 2014 CA. ALL RIGHTS RESERVED. 17% 16% Sources: Comscore, 66 Percent of Digital Media Population in Spain is Now ‘Multi-Platform’, March 2014 Harris Interactive, Cutting Edge Technologies Supplementing – Rather than Displacing – Older Tech, At Least For Now, June 2013
  5. 5. Start thinking differently about your software It’s not just an IT issue. It is a business imperative. There are five essential truths you need to learn about the Application Economy …
  6. 6. #1. Every business is in the software business Have you seen a car ad lately? It’s likely to tout applications and connections as much as styling and horsepower.
  7. 7. In some industries, the number of software jobs have doubled over the past five years Software Job Growth Manufacturing Healthcare Financial Services Retail 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Software Job Growth 31% 40% 72% 98% Source: Burning Glass Technology at http://www.burning-glass.com/research/software-is-
  8. 8. If you think your company isn’t in the software business, you’re wrong … Banks, airlines, athletic shoe companies – you name it – are all using applications to attract and engage customers and gain a competitive advantage.
  9. 9. #2. Your infrastructure is now your greatest competitive advantage IT infrastructure investment is no longer an IT decision—it’s now a business decision, made by C-level stakeholders looking for the best competitive advantage.
  10. 10. Google won Search with world-beating performance Google built a near-insurmountable competitive edge in Search by delivering an average search time of 0.06 to 0.12 seconds. BUT performance alone is not enough ... Source: Google's Infrastructure is its Strategic Advantage at http://gigaom.com/2007/12/04/google
  11. 11. also ^ Application quality and user experience are critical 25% of users will abandon a web application after just three seconds of delay* 80- o9f a0ll c%onsumer applications will only be used once Sources: *Aberdeen Group, Reaching the Top of the Web Performance Mountain, March 2013 Digital Trends, Are you a rarity? Only 16 percent of people will try out an app more than twice, March 2013 RT.com, NASDAQ longest downtime adds to woes over glitches in electronic trading, Aug 2013 11 © 2014 CA. ALL RIGHTS RESERVED. $500M cost of trading losses during Facebook IPO due to ‘system problems’
  12. 12. #3. DevOps should be your new best practice You need to build and deploy software faster, more reliably, and this means DevOps, where the creation, testing, and deployment of software is a single, integrated process. DevOps means your Dev and Ops teams can work more collaboratively to deliver the highest quality apps, with the best customer experience, in the fastest time possible, to maximize the value IT delivers.
  13. 13. DevOps pays big benefits A recent survey of 1300 senior IT leaders revealed that 39% of companies have already adopted a DevOps approach. Those using DevOps saw a 19% increase in revenue, a 20% reduction in time to market, and a 22% increase in quality. SOURCE: “What Smart Businesses Know About DevOps”, CA and Vanson Bourne, 2013
  14. 14. DirecTV brought Dev and Ops closer together to: • meet their consumers’ evolving needs • provide increased flexibility around their legacy systems • decrease time-to-market on their offerings SOURCE: Full Interview: Can a DevOps approach improve your agility and time-to- market? at http://www.ca.com/us/collateral/videos/na/full-interview-can-a- devops-approach-improve-your-agility-and-time-to-market.aspx
  15. 15. #4. Security should enable the business, not just protect it 65% of healthcare professionals think secure text messaging could reduce hospital discharge times by 50 minutes. This alone could save $3.1 billion in costs across the industry. SOURCE: May 2013 study by the Ponemon Institute titled “The Economic and Productivity Impact of IT Security on Healthcare”. http://www.imprivata.com/ponemon-economic-impact-study
  16. 16. Companies are using digital identities from third parties (BYOID) to strengthen security while creating a better customer experience 70% 30% 52% 19% 38% 17% 81% 76% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Strengthens the authentication process Enables self-service processes Delivers a better customer experience Increases the effectiveness of SOURCE: “The Identity Imperative for the Open Enterprise”, CA and marketing Vanson activities Bourne, 2014: http://transform.ca.com/428506-WW-Q2-FY15-SEC-Ponemon- Slideshare-2_428506-Landing-Page.html Biggest Differences in Perceived Value IT Business
  17. 17. #5. The mainframe has become the new secret weapon More than 80% of the IT executives at organizations using a mainframe say it is a strategic part of their current and future IT strategy. 58% believe that mainframe is and will be a highly strategic platform in their cloud computing strategy. SOURCE: “The Mainframe as a Mainstay of the Enterprise 2012” survey conducted by Decipher Research in August 2012
  18. 18. The mainframe is core to the Application Economy • 33% of organizations’ mainframe applications are accessible on mobile devices. • 35% of current mainframe applications are accessible via the cloud. SOURCE: Survey commissioned by Micro Focus and conducted by Vanson Bourne, 2014: http://www.microfocus.com/about/press/pressreleases/2014/pr04032014.aspx
  19. 19. The Five Truths of the Application Economy 1. Every business is in the software business. 2. Your infrastructure is now your greatest competitive advantage. 3. DevOps should be your new best practice. 4. Security should enable the business, not just protect it. 5. The mainframe has become the new secret weapon.
  20. 20. To learn more about how software enables the Application Economy, download a free copy of the Forrester report Software Must Enrich Your Brand

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